What is teh Digital Services Act?
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The Digital Services Act (DSA) is a European Union law that establishes a extensive set of new obligations for online platforms to protect fundamental rights online, including freedom of expression, and to tackle illegal content, disinformation, and harmful products.
Enacted on November 23, 2022, the DSA aims to create a safer digital space where illegal content can be quickly removed, users have more control over what they see online, and platforms are held accountable for the content they host. It applies to a wide range of online services, from social media platforms and online marketplaces to search engines and hosting services. The DSA operates alongside the Digital Markets Act (DMA), which focuses on ensuring fair competition in digital markets.
For example, very large online platforms (VLOPs) and very large online search engines (VLOSEs) - those with over 45 million active users in the EU - face the most stringent requirements, including conducting risk assessments and implementing mitigation measures to address systemic risks like the spread of illegal content and disinformation. The European Commission designated 17 VLOPs and VLOSEs in April 2023, including Meta Platforms, Apple, and Google. European Commission Announcement
Who Does the DSA Affect?
the DSA impacts a broad spectrum of online intermediaries, categorized based on their role and size. These categories determine the level of obligation imposed.
The law distinguishes between “intermediary services” (mere conduits, caching, and DNS providers), “hosting services” (cloud services, web hosting), and ”online platforms” (social networks, marketplaces). VLOPs and VLOSEs, as mentioned above, are subject to the highest level of scrutiny. Smaller platforms and businesses also have obligations, though they are less extensive. The DSA does *not* apply to email services or professional dialog services.
As of February 17, 2024, the DSA’s obligations began to apply to all online platforms. European Commission Press Release. Meta was fined €5.8 million on January 26, 2024, for failing to comply with DSA transparency obligations regarding online political advertising. European Commission Fine Announcement
What are the Key Obligations Under the DSA?
The DSA introduces several key obligations for online platforms, designed to increase transparency and accountability.
these include requirements to: remove illegal content promptly upon notification; provide users with clear and accessible terms and conditions; offer mechanisms for users to report illegal content; implement measures to protect users from harmful content, such as hate speech and disinformation; and provide transparency regarding online advertising and algorithmic systems. VLOPs and VLOSEs must also conduct annual risk assessments and implement mitigation measures to address systemic risks. The DSA also introduces a new cooperation mechanism between the european commission and national Digital Services Coordinators.
Specifically, platforms must now provide users with a clear clarification of how their recommendation algorithms work. A report published by the European Commission in December 2023 detailed the first risk assessment reports submitted by VLOPs, revealing widespread concerns about the potential for algorithmic amplification of illegal and harmful content. European Commission Report on risk Assessments
How is the DSA Enforced?
Enforcement of the DSA is a multi-layered process involving the European Commission and national Digital Services Coordinators.
Each EU member state has designated a Digital Services Coordinator responsible for supervising and enforcing the DSA within their jurisdiction. The European Commission has direct supervisory powers over VLOPs and vloses, while national coordinators oversee other platforms. The DSA provides for importent fines for non-compliance,up to 6% of a company’s global annual revenue. The Commission also has the power to impose interim measures, such as suspending operations, in cases of serious breaches.
On March 18, 2024, the European Commission opened formal investigations into TikTok and X (formerly Twitter) over potential breaches of the DSA related to the protection of minors and the spread of illegal content. European Commission Investigation Announcement These investigations could result in significant fines if violations are confirmed.
